Transcript Marketing Today

Marketing Today
 1.1 What is Marketing
 1.2 Businesses Need Marketing
 1.3 Understanding the Marketing
Concept
 1.4 Marketing’s Role Today and
Tomorrow
1.1 - What is Marketing?
Goals for Lesson 1.1
• Understand the importance of
studying marketing
• Explain what marketing is and
describe the marketing functions
• Define Marketing
Why Study Marketing?
 Marketing is important and profitable.
Businesses, consumers, and the economy
benefit from effective marketing.
 Where does marketing take place?
 Visual vs. Non-Visual Activities
 Visual – advertisements, transportation,
researchers
 Non-visual – manufacturers,
accountants, human resources
Businesses Directly
Involved in Marketing
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Advertising agencies
Marketing research firms
Sales representatives
Trucking companies
Credit card companies
Telemarketing businesses
Travel Agencies
Businesses with Major
Marketing Activities
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Retailers
Manufacturers
Banks
Real estate agencies
Insurance companies
Automobile dealers
Farmers and ranchers
Businesses with Limited
Marketing Role
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Law Offices
Physicians
Accounting firms
Government agencies
Universities
Construction businesses
Public Utilities
What is Marketing?
 Marketing Functions
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Product/service management
Distribution
Selling
Marketing Information Management
Financing
Pricing
Promotions
Marketing Functions
 Product/Service Management Assisting in the design and
development of products and services
that will meet the needs of
prospective customers
 Distribution – Determining the best
methods and procedures to be used
so prospective customers are able to
locate, obtain, and use the products.
Marketing Functions
 Selling – Direct, personal
communication with prospective
customers in order to assess needs and
satisfy those needs with appropriate
products and services
 Marketing-Info Management –
Obtaining, managing, and using
marketing information to improve
decision making and the performance of
marketing activities.
Marketing Functions
 Financing – Budgeting for marketing
activities, obtaining the necessary
financing, and providing financial
assistance to customers
 Pricing – Establishing and
communicating the value of products
and services to prospective customers
Marketing Functions
 Promotion – Communicating
information to prospective customers
through advertising and other
promotional methods to encourage
them to purchase the organization’s
products or services.
 Thinking Critical
Defining Marketing
 Old Definition – the performance of
business activities that direct the flow
of goods and services from producer
to users
 New Marketing is the creation and
maintenance of satisfying exchange
relationships
Understanding the Definition
Creation suggests that marketing is involved
from the very beginning
Maintenance means that marketing must
continue to be used as long as a business or
organization is operating
Satisfaction of both the business and the
customer is an important goal of marketing
Exchange Relationships applies the definition to
any exchange where people are giving and
receiving something of value
Review Activity
Identify and describe each of
the seven marketing functions
(product/service management,
distribution, selling, marketinginformation management,
financing, pricing, promotion)
and then provide real-life
examples of those functions
that you have experienced or
read about.
1.2 – Businesses Need
Marketing
Goals
 Explain why businesses need
marketing
 Understand how marketing has
developed in the business world
 Describe the functions of business
The Need for Marketing
 Marketing must be carefully planned
 Marketing must be coordinated with
other business activities
 Good products do not need
marketing?
 Info about the product
 Where to buy it, get to where it is sold
 Afford the price, good value
Marketing and the Development
of Business
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Bartering
Specialization of Labor
Money Systems
Central Markets
Other Marketing Activities
Bartering
 Exchanging products or services with
others by agreeing on their values
 Developed so people could exchange
with others to obtain the things they
needed.
 Hunters and farmers
 One of the first examples of marketing
Specialization of Labor
 Concentrating on one or a few related
activities so that they can be done
well.
 The ability to produce large quantities of
one product
 More of one product to exchange with
people
Money Systems
 The use of currency as a recognized
medium of exchange
 Not always possible to barter for various
reasons
 With money people could obtain products
 Money could be used for future
purchases
Central Markets
 A location where people bring
products to be conveniently
exchanged.
 Allowed for less travel
 Location was key to an effective market
Other Marketing Activities
 Loan money to buyers and sellers
 Transportation of products
Functions of Business
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Production
Operations
Accounting and Finance
Management and administration
Marketing
Coordination of business functions
Production
 Creates or obtains products or
services for sale
 Raw Material – obtaining raw materials
for sale to customers (mining, oil drillers)
 Processing – using raw materials and
changing their form through processing
so they can be used in the production of
other products (paper, food products)
 Services – no physical product (hair cut,
landscaping, merchandising)
Operations
 The ongoing activities designed to
support the primary function of a
business and to keep a business
operating efficiently.
 Building and equipment must be
maintained
 Product and material management
 Paperwork
 Customer service
Accounting and Finance
 Plans and manages financial
resources and maintains records and
information related to businesses’
finances
 Amount of capital, budget management,
borrowing of money, accounting
Management and
Administration
 Involves developing, implementing,
and evaluating the plans and
activities of business.
 Responsible for everything that occurs in
the business including the work of the
employees
 Responsible for the performance of the
company
Marketing
 All businesses need to complete a
variety of activities in order to make
their products and services available
to consumers and to ensure that
effective exchanges occur.
Coordination of Business
Functions
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Group Discussion
Using our school to illustrate how
business organizations engage in
various functions that must be
coordinated if the organization is to
be effective, explain how the school
carries out its various functions that
correspond to production, operations,
accounting and finance, management
and administration, and marketing.
1.3 – Understanding the
Marketing Concept
Goals
 Define the marketing concept
 Determine how businesses implement
the marketing
The Marketing Concept
 Using the needs of customers as the
primary focus during the planning,
production, distribution, and promotion of a
product or service
 The most successful businesses are the
ones that consider customer’s needs as
they produced and worked to satisfy those
needs as they produced and marketed their
products or services
Elements of the Marketing
Concept
1. Businesses must be able to identify
what will satisfy customer’s needs
2. Businesses must be able to develop
and market products or services that
customers consider to be better than
other choices
3. Businesses must be able to operate
profitably
The Marketing Concept
 Consequences of not satisfying
customer needs
 Have to rely on extensive advertising,
price reductions, rebates, pressure
selling, special displays
 Reductions in profit
 Reluctant to buy from that company
again
Implementing the Marketing
Concept
 Identifying the market
 Market refers to the description of the
prospective customers a business wants
to serve and the location of those
customers
Group Discussion
Network marketing as practice by Avon
Products, Tupperware, Amway, and other
products that are sold through networks of
contacts rather than through traditional
retail outlets.
Explain how network marketing can help
companies better understand and keep tabs
on changes in the needs of their customers
because there are no middlemen through
which communication can be garbled.
Implementing the Marketing
Concept
 Develop a marketing mix (the
blending of four marketing elements)
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Product
Place or distribution
Price
Promotion
Marketing Mix
 Product is anything
offered to a market by
the business to satisfy
needs, including physical
products, services, and
ideas
Marketing Mix
 Place includes the
locations and methods
used to make the
product available to
customers
Marketing Mix
 Price is the actual
amount that customers
pay and the methods of
increasing the value of
the product to the
customer
Marketing Mix
 Promotion includes the
methods and
information
communicated to
customers to encourage
purchases and increase
the satisfaction
Journal
 What are the advantages and the
disadvantages for consumers who
buy from online sites rather than
from stores? In what ways are the
sites a response to customer needs
and wants.
Group Activity
Using newspaper ads or magazine ads for
different brands of comparable products,
for example, two car ads or two ads for a
movie. Based strictly on the ads, using a
Venn Diagram compare the similarities and
differences of the markets these advertisers
seem to have identified and the marketing
mixes they have developed to appeal to
those markets. Which marketing effort do
you think was more effective, why?
1.4 – Marketing’s Role Today
and Tomorrow
Goals
• Describe the changing role of
marketing
• Summarize how marketing is
changing and why marketing is
important
The Changing Role of Marketing
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Product emphasis
Sales emphasis
Marketing department emphasis
Marketing concept emphasis
Product Emphasis
 Production Era (1900 – 1920s) –
emphasis on producing and
distributing new products
 Production processes were very simple
and few product choices were available
 People had a limited amount of money
 Transportation systems were not
developed
Sales Emphasis
 Sales Era (1930s – 1940s) –
emphasis on using advertising and
sales people to convince customers to
buy a company’s product
 More effective and efficient at producing
and distributing products
 Increased competition, which led to
companies relying on sales people
Marketing Department
Emphasis
 Marketing Department Era (1950s –
1960s) – emphasis on developing
many new marketing activities to sell
products
 People had more money to spend and
companies had to provide reasons for
consumers to buy their product
 Catalog, airplane distribution, retail
stores, credit purchases
Marketing Concept Emphasis
 Marketing Concept Era (1970s –
today) – emphasis on satisfying
customer’s needs with a carefully
developed marketing mix
 Companies started listening to the
consumer
 Activities were completed with customer
satisfaction in mind.
Marketing in Other
Organizations
 Due to the success of marketing it
spread into other organizations –
libraries, churches, government
agencies, community organizations.
 How do these organizations use
marketing?
Why is Marketing Important?
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Group Activity
Using newspaper ads or magazine ads for
different brands of comparable products,
for example, two car ads or two ads for a
movie. Based strictly on the ads, using a
Venn Diagram compare the similarities and
differences of the markets these advertisers
seem to have identified and the marketing
mixes they have developed to appeal to
those markets. Which marketing effort do
you think was more effective, why?